Stock trader

From ArticleWorld

The Stock Trader (sometimes referred to as Stock investor) is a person that buys and sells securities like bonds and stocks. Sometimes a stock trader is a firm and can become a financial advisor if it also manages extra tasks for his client and advises him on how, where and when to buy or sell securities.

Methodology

A stock trader will need a stock broker to operate as an intermediate. Internet Banking evolved during the past years and this lead to Internet connections being used in trading and in managing a portfolio while selling or buying orders and setting stop prices and the amounts that will be considered for business. The decision that is to be taken is done through technical and fundamental analysis. Nowadays stock traders are using the Internet extensively to get real time notices and news that can help them undergo day to day activities. Profit is gained by buying a security at a price that is believed to rise and if this happens the resale at a higher price will be financially beneficial

Risk and price

Trading is an operation that involves many risks. Large amounts of money can be lost if a bad investment is made. Experience becomes an important factor that needs to be assessed because several inexperienced traders usually make bad decisions. Brokerage institutions will also take their own commissions and fees, with taxes also needing to be paid. All these factors combined with other expenses can easily lead to bankruptcy so professionalism and advanced studying is needed.